International board still has 'issues'
Source: Xinhua |
November 12, 2012, Monday
|
Print Edition
Print Edition
CHINA'S securities regulator yesterday dampened hopes that overseas companies would be allowed to go public in domestic equity markets soon, saying that the launch of an international board needed a lot of preparations and China did not have a timetable for it.
Guo Shuqing, chairman of the China Securities Regulatory Commission, said in Beijing: "We have no plans to launch the international trading board in the near future and there are still a lot of issues that need to be addressed, such as issues concerning trading, law, accounting and regulations."
The launch of an international board, which would allow foreign firms to sell yuan-denominated shares in China, was stated in a document issued by the State Council, or the Cabinet, in 2009.
However, many economists and financial experts have voiced opposition to foreign companies listing in the domestic market, largely because they believe that neither the market environment nor China's A-shares operating system are ready for the introduction of foreign companies.
Guo dismissed concerns that the launch of the international board would draw funds away from domestic shares and send their prices down further.
Chinese stocks have sunk about 6 percent this year.
The impact on the market by the launch of international board would not be as big as expected, Guo said, adding that China's huge deposit reserves and great market potential would make the future launch of the new board affordable to domestic investors.
Guo said the combined market value of China's listed companies in domestic markets was just one fifth of the US stock market.
The government will accelerate the development of the capital market and make it play a better role in improving fund allocation and preserving the value of residents' deposits, Guo said.
Guo Shuqing, chairman of the China Securities Regulatory Commission, said in Beijing: "We have no plans to launch the international trading board in the near future and there are still a lot of issues that need to be addressed, such as issues concerning trading, law, accounting and regulations."
The launch of an international board, which would allow foreign firms to sell yuan-denominated shares in China, was stated in a document issued by the State Council, or the Cabinet, in 2009.
However, many economists and financial experts have voiced opposition to foreign companies listing in the domestic market, largely because they believe that neither the market environment nor China's A-shares operating system are ready for the introduction of foreign companies.
Guo dismissed concerns that the launch of the international board would draw funds away from domestic shares and send their prices down further.
Chinese stocks have sunk about 6 percent this year.
The impact on the market by the launch of international board would not be as big as expected, Guo said, adding that China's huge deposit reserves and great market potential would make the future launch of the new board affordable to domestic investors.
Guo said the combined market value of China's listed companies in domestic markets was just one fifth of the US stock market.
The government will accelerate the development of the capital market and make it play a better role in improving fund allocation and preserving the value of residents' deposits, Guo said.
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